A STUDY ON DEPOSIT MOBILIZATION WITH REFERENCE TO INDIAN OVERSEAS BANK, VELACHERY By VINOTH KUMAR .S (Reg No.411711631041) A PROJECT REPORT Submitted to the FACULTY OF MANAGEMENT SCIENCES In Partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION IN Financial Management ANNA UNIVERSITY CHENNAI – 600 025 July, 2013 BONAFIDE CERTIFICATE Certified that this project report titled “A STUDY ON DEPOSIT MOBILIZATION” with reference to “INDIAN OVERSEAS BANK, VELACHERY” is the bonafide work of Mr. VINOTH KUMAR. S, (Reg. no: 411711631041) who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported herein does not form a part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate. Signature of Supervisor Signature of HOD (Miss.S.Mahalakshmi,M.B.A,M.Phil., Lecturer, Department of Management Studies Prince Shri Venkateshwara Padmavathy Engineering College, Ponmar, Chennai – 48) (Mrs.S.Rathika.,B.E.,M.B.A.,M.Phil., Assisstant Professor & Head, Department of Management Studies, Prince Shri Venkateshwara Padmavathy Engineering College, Ponmar, Chennai-48) Submitted to project Viva-Voce held on Internal Examiner External Examiner DECLARATION I hereby declare that the project report entitled “A STUDY ON DEPOSIT MOBILIZATION” with reference to “INDIAN OVERSEAS BANK, VELACHERY” submitted for the M.B.A degree is my original work dissertation has not framed the basis for the award of any degree, associate ship, fellowship or any other similar title. Place : Date : Signature of the Student (VINOTH KUMAR.S) ACKNOWLEDGEMENT It is my privilege to record my sincere thanks to our Chairman, Dr. K.Vasudevan, M.A, B.Ed., Ph.D. of Prince Sheri Venkateshwara Padmavathy Engineering College, Ponmar for consecutive motivating words to complete the project report. I would like to thank Dr. T. Sounderrajan, M.Tech, Ph.D., Principal of Prince Sheri Venkateshwara Padmavathy Engineering College, Ponmar for giving this opportunity to do this project. I have a great pleasure in expressing my sincere thanks to Mrs.S.Rathika, B.E, M.B.A, and M.Phil. Head of Department., Department of Management Studies for her continuous motivation throughout the training period. I would like to thank Miss.S.Mahalakshmi, M.BA, M.Phil., Lecturer, Department of Management studies for her guidance and support for doing the project successfully. I express my heartful thanks to Mr. Lakshmi Narayanan (Manager) and Mrs. Latha (Accounts officer), for their help and care during my visit to the company. I am also extremely thankful to my parents for their help and support given to finish the project. (Vinoth Kumar. S) 2 3.1 3.0 CHAPTER .3 1.TABLE OF CONTENTS CHAPTER NO CHAPTER .9 CHAPTER .6 1.4 1.1 1.2 1.I 1.II 2.7 1.III 3.8 1.3 PARTICULARS INTRODUCTION Introduction Industry profile Company profile Need for the study Objectives of the study Scope of the study Review of Literature Research methodology Limitation of the Study DEVELOPMENT OF THE MAIN THEME Data analysis and Interpretation RESULT OF THE STUDY Summary of Findings Suggestions Conclusion PAGE NO.5 1. . 3 2.7 2.9 2.5 2.1 2.LIST OF TABLE TABLE NO 2.10 TITLE PAGE NO .4 2.2 2.8 2.6 2. LIST OF CHART CHART NO 2.1(a) 2.9(a) 2.4(a) 2.3(a) 2.8(a) 2.6(a) 2.7(a) 2.2(a) 2.10(a) TITLE PAGE NO .5(a) 2. leasing etc The study has been conducted to know the various deposit schemes offered. trend analysis and comparative balance sheet. the data analysis was made by using the following tools such as percentages. interest rates and benefits for mobilizing their deposits. Deposit constitutes the backbone of the finance company. and also identify whether bank disperse the deposits properly by making investment and providing loans and advances. The data is collected from the secondary sources like internet and records of the bank i. . In this research. The main objective of the study is to find out the cash flow in terms of deposits with the various deposit schemes offered by the bank.ABSTRACT The project is mainly concerned with the deposit section of Indian overseas bank..e. The research design used for this study is analytical research design. consisting of hire purchasing. balance sheet. Deposits are accepted from the public for profitable deployment in the company‘s business. Survival and development of the banks are mainly influenced by their capital resources.1 INTRODUCTION One of the important functions of the bank is to accept deposits from the public for the purpose of lending. A bank purchases deposits in order to produce and sell the loans advances. Deposit plays a significant role in running a banking industry. Savings deposits. Investment in Financial Markets The investment functions are usually performed by Treasury Office of the bank. Deposit mobilization has greater significance because of the confinement of credit policies and tough competition for deposits among banks. With liberalization in the financial system and deregulation of interest rates. between banks and non-banking companies. Deposit Mobilization means campaigning and collecting customer deposits. bank mobilizes deposits by making finance and by investing in various financial markets. Treasury invest deposit for: . Basically deposit mobilization is related to the creation of credits. The depositors and their interests form the key area of the regulatory framework for banking in India and this has been enshrined in the Banking Regulation Act. The Reserve Bank of India is empowered to issue directives advices on interest rates on deposits and other aspects regarding conduct of deposit accounts from time to time. 1949. Money placed into a banking institution for safekeeping.1. Bank deposits are made to deposit accounts at a banking institution. depositors are the major stakeholders of the Banking System. In fact. banks are now free to formulate deposit products within the broad guidelines issued by RBI. such as Demand deposits. conduct and operations of various deposits accounts. Managing market and liquidity risks This policy document on deposits outlines the guiding principles in respect of formulation of various deposit products offered by the Bank and terms and conditions governing the conduct of the account. While adopting this policy. etc. "Demand deposits" means a deposit received by the Bank which is with drawable on demand. payment of interest on various deposit accounts. the bank reiterates its commitments to individual customers outlined in 'Code of Banks' Commitment to Customers'. The various deposit products offered by the Bank can be categorized broadly into the following types. The document recognizes the rights of depositors and aims at dissemination of information with regard to various aspects of acceptance of deposits from the members of the public.. closure of deposit accounts. Rising additional resources required for meeting credit demands. for the benefit of customers. "Savings deposits" means a form of demand deposit which is subject to restrictions as to the number of withdrawals as also the amounts of withdrawals permitted by the Bank during any specified period. Ensuring optimum utilization of available resources. Definitions of major deposits schemes are as under: Deposit: Money given in advance to show intention to complete the purchase of a property or Money transferred into a customer's account at a financial institution. method of disposal of deposits of deceased depositors. "Current Account" means a form of demand deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or up to a . . Interest may be received by him periodically or at maturity. the accumulated amount along with interest accrued is paid in lump sum. Fixed deposit: Fixed deposit is a deposit scheme wherein a depositor agrees to receive back the principle amount after a specified period agreed at the time of deposit. "Term deposit" means a deposit received by the Bank for a fixed period with drawable only after the expiry of the fixed period. Recurring deposit: A recurring deposit is a form of term deposit in which depositor deposits a fixed sum of money by way of monthly installment over a stipulated period and on the expiry of this period.particular agreed amount and will also include other deposit accounts which are neither Savings Deposit nor Term Deposit. continued to be owned and operated by private persons. The three banks merged in 1921 to form the Imperial Bank of India. which almost immediately became the Bank of Bengal. as did their successors. banks in India except the State Bank of India or SBI. became the State Bank of India in 1955. It is the life-blood of trade and commerce. a modern bank performs a host of other functions. and Bank of Hindustan. All of which are not considerable utility to its customers and the community generally.2 INDUSTRY PROFILE Banking in India in the modern sense originated in the last decades of the 18th century. Their activities are to be directed in such a way that they function effectively and efficiently. Times of India. The first banks were The General Bank of India. all three of which were established under charters from the British East India Company. upon India's independence. This was one of the three presidency banks. For many years the presidency banks acted as quasi-central banks. which started in 1770. which originated in the Bank of Calcutta in June 1806. both are now defunct. By the 1960s. it had emerged as a large . control and regulations of Reserve Bank of India. Nationalization in the 1960s Banks Nationalization in India: Newspaper Clipping. the Indian banking industry had become an important tool to facilitate the development of the Indian economy. which started in 1786. At the same time.1. Banking has played a very important role in the economic development of country. Their performance is all more important. The oldest bank still in existence in India is the State Bank of India. They are so important that modern business is certainly impossible without them. In addition to lending and borrowing of money. 1969Despite the provisions. Banking systems play a pivotal role in the economic development of a country like India. the other two being the Bank of Bombay and the Bank of Madras. July 20. and no country can achieve commercial and industrial progress in the absence of a sound banking system. which. revitalized the banking sector in India. 1969. Thereafter. namely. After this. in the year 1993. which has seen rapid growth with strong contribution from all the three sectors of banks. along with the rapid growth in the economy of India. her move was swift and sudden. described the step as a "masterstroke of political sagacity. . Later on. With the second dose of nationalization. and a debate had ensued about the nationalization of the banking industry. the nationalised banks grew at a pace of around 4%. the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill. expressed the intention of the Government of India in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization. private banks and foreign banks. government banks. which later amalgamated with Oriental Bank of Commerce. Liberalization in the 1990s In the early 1990s. until the 1990s. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalised banks from 20 to 19. the government merged New Bank of India with Punjab National Bank. then Prime Minister of India. the then Narasimha Rao government embarked on a policy of liberalization. ICICI Bank and HDFC Bank. The stated reason for the nationalization was to give the government more control of credit delivery. A second dose of nationalization of 6 more commercial banks followed in 1980. licensing a small number of private banks. and included Global Trust Bank (the first of such new generation banks to be set up)." Within two weeks of the issue of the ordinance. closer to the average growth rate of the Indian economy. UTI Bank (since renamed Axis Bank). Indira Gandhi. a national leader of India. These came to be known as New Generation tech-savvy banks. the Government of India controlled around 91% of the banking business of India. This move. The Government of India issued an ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance. and it received the presidential approval on 9 August 1969.employer. These banks contained 85 percent of bank deposits in the country Jayaprakash Narayan. 1969')) and nationalized the 14 largest commercial banks with effect from the midnight of July 19."The meeting received the paper with enthusiasm. with minimal pressure from the government. till this time. were used to the 4-6-4 method (Borrow at 4%. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%. People not just demanded more from their banks but also received more. product range and reacheven though reach in rural India still remains a challenge for the private sector and foreign banks. With the growth in the Indian economy expected to be strong for quite some timeespecially in its services sector-the demand for banking services. . One may also expect M&as. and asset sales. Bankers. The new policy shook the Banking sector in India completely. All this led to the retail boom in India.The next stage for the Indian banking has been set up with the proposed relaxation in the norms for Foreign Direct Investment. Lend at 6%. Go home at 4) of functioning. strong and transparent balance sheets relative to other banks in comparable economies in its region. especially retail banking. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. Indian banks are considered to have clean. The Reserve Bank of India is an autonomous body. mortgages and investment services are expected to be strong. In terms of quality of assets and capital adequacy. takeovers. at present it has gone up to 74% with some restrictions. Current period Banking in India was generally fairly mature in terms of supply. the Bank started computerization in the areas of inter-branch reconciliation and provident fund accounts. Its International VISA Debit Card is accepted at all ATMs belonging to the Cash Tree and NFS networks. the bank has achieved 100% networking status as well as 100% CBS status for its branches. Mumbai.1. Indian Overseas Bank boasts of a vast domain in banking sector with over 2650 domestic branches. which has developed the software that 2650 branches use to provide online banking to customers. and National Stock Exchange of India Ltd. Indian Overseas Band undertook an initial public offering (IPO) that brought the government's share in the bank's equity down to 75%. it soon opened its branches in Penang and Singapore. IOB has absorbed various banks including the latest — Bharat Overseas Bank — in 2007. and Yangon (Myanmar). IOB opened a Foreign Currency Banking Unit in the free trade zone in Colombo. After nationalization. The bank's business more than doubled in the last four years. it's one of the banks that the Govt. In the year 2000. Bombay Stock Exchange. Indian Overseas Bank (IOB) is a leading bank based in Chennai. IOB had the distinction of simultaneously commencing operations in three branches at Karaikudi. India. In 1979. Sri Lanka and Bangkok). . Today. Since IOB aimed to encourage overseas banking and foreign exchange operations. four representative offices.3 COMPANY PROFILE Established in 1937. Since its inception. Indian Overseas Bank was one of the 14 major banks which were nationalized in 1969. The equity shares of IOB are listed in the Madras Stock Exchange (Regional). Indian Overseas Bank also has a network of about 1433ATMs throughout India. South Korea. as it introduced the popular Personal Loan scheme. two remittance centers and one extension counter IOB was the first bank to venture into consumer credit.. Indian Overseas Bank has an ISO certified in-house Information Technology department. 3 extension counters and 6 branches overseas branches (two branches in Hong Kong and one each in Singapore. Chennai. In 1964. IOB also offers Internet Banking. of India has approved for online payment of taxes. the Bank emphasized on opening its branches in rural parts of India. including Savings Account. Home Loans. Depositary Services. NRI Account. Credit Cards. Accounting procedures & other matters Agricultural advances . Any Branch Banking. Dhaliyur village in Coimbotore District and Innambur village in Thanjavur. Payment of Bills / Taxes. Current Account. etc. It provides a wide range of consumer and commercial banking services. Provident Fund Scheme. Kameshwaram village in Nagapattinam District. the Bank launched a rural development project aiming at total village development called IOBSampoorna in Kuthambakkam and Padur villages in Tiruvallur District. Debit Cards. Forex Collection Services.Lockers & safe custody service Nominations and settlement Advances Management of non-performing assets Rehabilitation of sick industrial units Suit filed accounts Foreign Exchange Operation I. Online Banking. During fiscal 2009.Indian Overseas Bank offers investment options like Mutual Funds and Shares. Retail Loans.O.B Gold Deposit Scheme Government accounts. Tamil Nadu Product and Service Profile Constituents accounts Savings account Current and cash credit account Term deposits Safe deposits. VISA Cards. Agricultural Loans. 1. . the importance of the study is to analyze the various deposit schemes offered by the bank. interest rates and benefits offered to attract the deposits from investors. whether bank disperse the deposit effectively by making investment in various financial markets and providing finance to various sectors to increase the net worth of the deposits.4 NEED FOR THE STUDY The project is mainly concerned with the deposit section. And also identify. velachery. SECONDARY OBJECTIVES: To identify the performance of deposit and loans with the help of cash inflows. . To analyze the return on investment of deposit.1.5 OBJECTIVES OF THE STUDY PRIMARY OBJECTIVE: To study the Deposit mobilization with reference to Indian overseas bank. and also identify the level of loans and advance provided to various sectors out of deposits. .6 SCOPE OF THE STUDY The present study attempts to obtain a general view of deposit schemes in Indian overseas bank. The study focuses only towards the bank. This study helps to determine whether the deposit level is increased or decreased with the various schemes offered.1. But it does include the views of the others who are directly or indirectly associated with the bank. velachery. Certificates of deposit (CD) are ideal for money above 25. Joseph studied the performance of Lead Bank Scheme. in an article discussed investments in higher yielding accounts without sacrificing investment safety. He observed that competition from co-operative and other institutions was the main obstacles to achieving the deposit mobilization target. and also presents several charts that give return data for selected funds and accounts in various categories including topyielding taxable and tax free money market funds. Nada in their article examined how commercial bank deposits and lending have evolved during the economic crisis compared with past episodes of financial stress.7 REVIEW OF LITERATURE Mora. Joan.s dollars. The popularity of private financial institutions was due to their personal relations with local people. and it is noted that the treat of possible bank runs tends to foster a more prudent approach to financial risk.000 u.1. such as moral hazard.s dollars. Laurent studied the perception of customers on five competing banks in a medium size city in UK for private deposits. Kam Hon Chu discussed in their article about runs and deposit insurance policy and issues such as financial stability and government bailouts.000 u. The question whether banking regulatory agencies have a history of successfully preventing or correcting market failures is also addressed. Some community banks and credit unions offer up to 5 percent on balances of up to 25. It compares the 2007 to 2009 financial crisis with previous financial market disruptions and explores whether deposits and loans increased less at bank where deposits were more likely to be viewed as unsafe. Joan in an article offers advice on switching banks. Goldwasser. Kosnett. the mobilization of bank deposits in Kerala by commercial Banks. 56. Goldwasser. and top-yielding one year and five year certificates of deposit. Jeffrey R. He observed that these five banks differed from each other as a . Some problems with deposit insurance are analyzed. It is also suggested to invest in short term bonds and bank loans.4 percent of the customers (self-employed) surveyed had their first percent dealing with banks for taking loans. It advises that branch staff needs to be proactive in welcoming and directing customers as they arrive and each customer interaction should be viewed as an opportunity to depend the bank‘s relationship with that individual. Georgas. According to the author. without such a strategy. The growth rate in deposits of commercial banks cannot be explained in terms of price differentials as co-operatives offer high rates of interest. convenience. In respect of deposit supplies. Avadhani studied the performance of rural branches of some commercial banks in order to identify the factors influencing deposit mobilization in rural areas in different states. These seven attributes accounted for 91 percent of the overall differences between the five banks.. friendliness. Therefore product differentials would offer a better explanation of the disparate growth rates in deposits. quality of service. K. Nag and Mr. Shivaswamy studied the comparative performance of foreign and Indian banks and observed that there was a distinct preference of bank customers to bank with foreign banks notwithstanding the fact that foreign banks stipulate relatively high levels of minimum amounts to be maintained as deposits and charge relatively high interest rates and service costs. but also losing existing deposits. He came out with the opinion that there existed sufficient relationship between the deposits of a rural branch and its age. Raju studied the levels of savings and the manner of their distribution among different physical and financial assets of household sector and identified the factors influencing their .result of oligopolistic market situation only on seven attributes i. a bank risks not only missing opportunities to generate new deposit accounts. Large accretion of non-resident deposits with foreign banks was mainly because of the familiarity of the names of foreign banks operating in India to banks abroad. modem facilities. proactive and comprehensive customer service strategy is the key for banks to attract and retain core deposits. Mary Ellen in an article suggested that an effective. there existed the different market segments. range of services and ownership.e. their strategy had been to procure from a segmented part of the total supplies of deposits of large size from a relatively small number of depositors. The study revealed that on the basis of perception of overall image of the five banks relative to each other. The growth of deposits is at a faster rate in the first six years and tapers off subsequently. community spirit. the credit deposit rate (CDR) and the revision of the monetary policy of the State bank of Pakistan (SBP) have been accounted for unimproved returns. The study revealed that the household sectors preferences between bank deposits and lending to private corporate sector tended to be in favour of the latter and against the former. Subramanian in his research analyzed the empirical analysis on dis-intermediation from the household sectors portfolio preferences point of view based on demand model of five assets including bank deposits. depending upon a person‘s risk tolerance and duration for which they are prepared to commit their funds. are very safe but offer little yield. Senior bankers claimed that the structural imbalance in the banking sector has contributed to such stagnation.S Federal Deposit Insurance Corp. Gerstner.Goldwasser Joan in their article discussed option for savings.Lisa. Banks accounts insured by the U.savings behavior. . People willing to invest money for at least several months might consider a certificate of deposit. Moreover. Nalini in his research study studied on the impact of mutual funds on the deposit mobilization of commercial banks examined the awareness level and adoption level of mutual funds among household investors. but the changes Aazim. She found that the advent of mutual funds has brought in expected changes in the growth of bank deposits and their ownership pattern. Mohiuddin in an article focuses on the stagnation of rates of return on overall bank deposits despite the increase in lending rates in Pakistan. He found that major portions of the savings of households were in the form of financial savings and that too in the form of bank deposits. It is important for research to know not only the research method but also know methodology. All this means that it is necessary for the researcher to design his methodology for his problem as the same may differ from problem to problem. Research Methodology Research methodology is a way to systematically solve the research problem. collecting and evaluating data.8 RESEARCH METHODOLOGY Research Research is a serious academic activity with a set of objectives to explain or analyse or understand a problem or finding solution for problem adopting a systematic approach in collecting. organizing and analyzing the information relating to a problem. Research Methods Research methods may be understood as all those methods or techniques that are used for conducted of research. . It may be understood as a science of studying now research is done systematically.‖ Methodology is an essential aspect of any project or research. those are generally adopted by a researcher in studying his problem along with the logic behind them.1. Methods comprise the procedures used for generating. ‖The procedures by which researcher go about their work of describing. In that various steps. It enables the researcher look at the problem in a systematic manner. explaining and predicting phenomenon are called methodology. life. qualitative and quantitative information.1. 1. cost failure modes. in any circumstances. They are Primary data collection Secondary data collection .8. speedy and practical alternative to experimental investigation. The design analysis tools provide. measurement and analysis of data. It also includes descriptive facts. It constitutes the blueprints for the collection. Analytical Research Design: The analytical tool is designed to enhance the participants familiarity with fundamental principles and applications of analytical design techniques and how they can be used to achieve a good. There are two types of data collection. a cost effective.2 Data Collection Data refers to information or facts.1 Research Design ‖A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. cost effective and reliable design. non numerical information. Often. The research design took for the study was ‗Analytical research design‘. There are a number of analysis techniques available to predict product performance.‖ In Fact. researchers understand by data only numerical figure.8. the research design is the conceptual structure with in which research is conducted. the term ― trend analysis‖ is often to predict future events. Percentages are used in making comparisons between two or more series of data. It is used to give a tabulated representation of the respondent‘s viewpoint TREND ANALYSIS: Trend analysis is the practice of collecting information and attempting to spot a pattern. it could be used to estimate uncertain events in the past. in the information. or trend. and breaks the analysis down to .Primary data are those which are collected a fresh and for the first time and thus happen to be original in character. It refers to the special kind of ratio.8. CASH FLOW STATEMENT The cash flow statement is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents. Percentages are based on descriptive relationship. 1. such as how many ancient kings probably ruled between two dates.3 Financial Tool Percentage Method In the case of dichotomous and multiple choice questions percentage calculated as a part of the analysis of such questions.it is an original collection of reports and details. based on data such as the average years which other known kings reigned. The secondary data is the nature of data collection work is merely that of compilation. In some fields of study. Secondary data are those which have already been collected by someone else and which have already been passed through the statistical and financial process. Essentially. which. the statement of cash flows is useful in determining the short-term viability of a company. particularly its ability to pay bills. and financing activities. on the income statement and balance sheet. and money going out from the business is called cash outflow. As an analytical tool. The money coming into the business is called cash inflow. The statement captures both the current operating results and the accompanying changes in the balance sheet. The cash flow statement is distinct from the income statement and balance sheet because it does not include the amount of future incoming and outgoing cash that has been recorded on credit. includes cash sales and sales made on credit. cash is not the same as net income. . the cash flow statement is concerned with the flow of cash in and cash out of the business. investing.operating. Therefore. ( Restriction on the availability of primary data on bank financials) The data collection is limited to 5 years and hence it does not give the whole picture.9 LIMITATIONS OF THE STUDY The analysis is based on the secondary data. . Hence there is a limitation of doubtful accuracy. The study is not generalizable.1. 1.1 (A) Chart showing percentage increase/decrease in savings deposits Savings Deposits 0.20 0.1 Table showing percentage of increase/decrease in savings deposits ABSOLUTE INCREASE/ DECREASE 90119007 113407409 25539095 45148329 YEAR 2009 2010 2011 2012 2013 AMOUNT IN Rs('000) 280079351 370198358 483605767 509144862 554293191 (%) INCREASE/DECREASE 0.40 0.1 DATA ANALYSIS & INTERPRETATION Important part of any kind of research by doing this in depth data comparison the researcher can begin to identify various data that will help to understand more about the respondent guide towards better decision.00 2009 2010 2011 2012 2013 (%) INCREASE/DECREASE .10 0. The tools used for the study are percentage Table 2.09 Interpretation: From the above table it is interpreted that the saving deposits level in the decreasing level by comparing the past 5 year financial report.05 0. Chart No 2. the deposit level has been reduced drastically.31 0.30 0.1.2.32 0. 2 Table showing percentage of increase/decrease in current account YEAR 2009 2010 2011 2012 2013 AMOUNT IN Rs('000) 71214720 66254090 76806457 71529202 86835649 ABSOLUTE INCREASE/ DECREASE (%) INCREASE/DECREASE -4960630 10552367 -5277255 15306447 -0.1.2 (A) Chart showing percentage increase/decrease in current account Current Deposits 0.05 -0.20 0.00 2009 -0. its vary from one year to another year.Table 2.10 (%) INCREASE/DECREASE 0.25 0.21 Interpretation: From the above table it is interpreted that the current deposits level has not been in constant state by comparing the past 5 year financial report.05 0.07 0.15 0.07 0.16 -0.10 2010 2011 2012 2013 .1. Chart No 2. 20 0.76 -147615.00 0.33 211218.60 0.67 ABSOLUTE INCREASE/ DECREASE -32981.40 2009 2010 2011 2012 2013 (%) INCREASE/DECREASE . Chart NO 2.52 Interpretation: From the above table it is interpreted that the Short term deposit level has not been in constant state by comparing the past 5 year financial report.44 (%) INCREASE/DECREASE -0.20 -0.80 0.56 403607.27 0.40 1.4 221099.8 551222.1.3 (A) Chart showing percentage increase/decrease in short deposits Short Deposits 1.Table 2.20 1.23 614825.40 0.6 330122.60 1.1.3 Table showing percentage of increase/decrease in short deposits YEAR 2009 2010 2011 2012 2013 AMOUNT IN Rs('000) 254081. its vary from one year to another year.13 1.00 -0.49 -0. 00 2009 -2.1.Table 2.4 (A) Chart showing percentage increase/decrease in fixed deposits Fixed Deposits 12.00 0.00 2010 2011 2012 2013 .81 Interpretation: From the above table it is interpreted that the Recurring deposits level has been decreasing by comparing the past 5 year financial report.1.25 0.00 (%) INCREASE/DECREASE 4.07 11. Chart No 2.00 2.00 8.4 Table showing percentage of increase/decrease in fixed deposits year 2009 2010 2011 2012 2013 Fixed Deposits 291713 310713 3806243 3895724 755796 ABSOLUTE INCREASE/ DECREASE 19000 3495530 89481 -3139928 (%) INCREASE/DECREASE 0.00 6.02 -0.00 10. 07 -0.04 -0. the deposit level has been increased compared to the year 2011 due to higher interest rate available to this scheme.00 0.00 10.5 (A) Chart showing percentage increase/decrease in reinvestment deposits Reinvestment Deposits 12.1.00 8.1.5 Table showing percentage of increase/decrease in reinvestment deposits YEAR 2009 2010 2011 2012 2013 Interpretation: AMOUNT IN Rs('000) 753686936 787185520 729888775 643537407 7636644286 ABSOLUTE INCREASE/ DECREASE 33498584 -57296745 -86351368 6993106879 (%) INCREASE/DECREASE 0. Chart No 2.00 2.00 2010 2011 2012 2013 .00 2009 -2.Table 2.12 10.87 From the above table it is interpreted that the Reinvestment deposits level has been increased by comparing the past 5 year financial report.00 (%) INCREASE/DECREASE 4.00 6. 20 0.05 0.25 0.6 Table showing percentage of increase/decrease in recurring deposits YEAR 2009 2010 2011 2012 2013 AMOUNT IN Rs('000) 9331603 12688100 13550730 15731200 20959550 ABSOLUTE INCREASE/ DECREASE (%) INCREASE/DECREASE 3356497 862630 2180470 5228350 0.1.35 0. Chart No 2.6 (A) Chart showing percentage increase/decrease in recurring deposits Recurring Deposits 0.33 Interpretation: From the above table it is interpreted that the Recurring deposits level has been increased by comparing the past 5 year financial report.15 0.1.10 0.16 0.30 0.Table 2.36 0.07 0.40 0.00 2009 2010 2011 2012 2013 (%) INCREASE/DECREASE . it has taken place due to investment period and interest rate. Chart No 2.25 0.30 0.20 0.1.7 Table showing percentage of increase/decrease in special fixed deposits YEAR 2009 2010 2011 2012 2013 AMOUNT IN Rs('000) 182666707 212783265 248130804 323517404 387517408 ABSOLUTE INCREASE/ DECREASE 30116558 35347539 75386600 64000004 (%) INCREASE/DECREASE 0.20 Interpretation: From the above table it is interpreted that the special fixed deposits level has been increased by comparing the past 5 year financial report.16 0.Table 2.15 Special Fixed Deposits (%) INCREASE/DECREASE 0.10 0.00 2009 2010 2011 2012 2013 .1.05 0.17 0.30 0.35 0. the deposit level has been increased due to various investment period offered by the bank.7 (A) Chart showing percentage increase/decrease in special fixed deposits 0. 8. Chart 2.Table 2. but the current trend show decreased in the short term deposits.4 YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 TOTAL Y 25408140 22109980 55122256 40360723 61482567 ∑Y= 204483666 X^2 4 1 0 1 4 ∑XY=10 XY -50816200 -22109980 0 40360723 122965134 ∑XY=90399677 INTERPRETATION: From above table it is interpreted that short term deposits has been increased rapidly from the year 2010-11.Chart showing the trend in short deposits for the Indian overseas bank short deposits 450000000 400000000 350000000 300000000 250000000 200000000 150000000 100000000 50000000 0 .Table showing the trend in short deposits for the Indian overseas bank X=YEAR2010 -2 -1 0 1 2 ∑X=0 TREND VALUES 390887396.6 399927364.7 42704727.8 (a).3 408967332 418007299. Table 2.1 1812037.Chart showing the trend in fixed deposits for the Indian overseas bank fixed deposits 3000000 2500000 2000000 1500000 1000000 500000 0 . Chart 2.2 INTERPRETATION: From above table it is observed that fixed deposits has been increased rapidly from the year 2008-11.9 (a).8 2263355.5 2714673.9.4 1360720.Table showing the trend in fixed deposits for the Indian overseas bank YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 TOTAL Y 291713 310713 3806243 3895724 755796 ∑Y= 9060109 X=YEAR2010 -2 -1 0 1 2 ∑X=0 X^2 4 1 0 1 4 ∑XY=10 XY -583426 -310713 0 3895724 1511592 ∑XY=4513177 TREND VALUES 909402. but the current trend shows decreased in the level of fixed deposits. 5 270923117.Table 2.Chart showing the trend in special fixed deposits for the Indian overseas bank special fixed deposits 400000000 350000000 300000000 250000000 200000000 150000000 100000000 50000000 0 . Chart 2.6 322966671.Table showing the trend in special fixed deposits for the Indian overseas bank X=YEAR2010 -2 -1 0 1 2 ∑X=0 TREND VALUES 166836009.10.8 YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 TOTAL Y 182666707 212783265 248130804 323517404 387517408 ∑Y= 1354615508 X^2 4 1 0 1 4 ∑XY=10 XY -365333414 -212783265 0 323517404 775034816 ∑XY=520435541 INTERPRETATION: From the above table it is interpreted that the raise in the level of deposits has been increased from year to year .7 375010225.10 (a). there is no decreased level as compared to the last 5 year annual report.4 218879563. 11 (a).4 YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 TOTAL Y 9331603 12688100 13550730 15731200 20959550 ∑Y= 72261183 X^2 4 1 0 1 4 ∑XY=10 XY -18663206 -12688100 0 15731200 41919100 ∑XY=26298994 INTERPRETATION: From the above table it is interpreted that the raise in the level of recurring deposits has been increased from year to year.Chart showing the trend in recurring deposits for the Indian overseas bank recurring deposits 25000000 20000000 15000000 10000000 5000000 0 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 .Table 2.11. due to higher interest offered by the banks.Table showing the trend in recurring deposits for the Indian overseas bank X=YEAR2010 -2 -1 0 1 2 ∑X=0 TREND VALUES 9192437. Chart 2.6 17082136 19712035.2 14452236.8 11822337. there is no decreased level as compared to the last 5 year annual report. 12.12 (a). Chart 2.Chart showing the trend in saving deposits for the Indian overseas bank savings deposits 700000000 600000000 500000000 400000000 300000000 200000000 100000000 0 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 .6 YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 TOTAL Y 280079351 370198358 483605767 509144862 554293191 ∑Y= 2197321529 X^2 4 1 0 1 4 ∑XY=10 XY -560158702 -370198358 0 509144862 1108586382 ∑XY=687374104 INTERPRETATION: From above table it is interpreted that saving deposits level has been increased rapidly in the last 5 years.8 508201716.Table showing the trend in saving deposits for the Indian overseas bank X=YEAR2010 -2 -1 0 1 2 ∑X=0 TREND VALUES 301989485 370726895.Table 2.4 439464305.2 576939126. 6 YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 TOTAL Y 71214720 66254090 76806457 71529202 86835649 ∑Y= 372640118 X^2 4 1 0 1 4 ∑XY=10 XY -142429440 -66254090 0 71529202 173671298 ∑XY=36516970 INTERPRETATION: From above table it is interpreted that the level of current deposits has been increased from 20082011 as compared to the current year.Chart showing the trend in current account for the Indian overseas bank current account 90000000 80000000 70000000 60000000 50000000 40000000 30000000 20000000 10000000 0 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 .13.6 74528023.Table showing the trend in current account for the Indian overseas bank X=YEAR2010 -2 -1 0 1 2 ∑X=0 TREND VALUES 67224629.6 78179720.6 81831417.6 70876326.Table 2. Chart 2.13 (a). 1 SUMMARY OF FINDINGS .3. Bank should concentrate on developing an appropriate strategy for attracting deposits and mobilize the same. Bank should identify the potential centers and open the branches at such centers as people look for proximity of bank from their location.2 SUGGESTIONS The basic problem determined in the bank is people are not aware about the various schemes offered by Indian overseas bank. Bank concentrates on engaging more marketing personnel to have a complete analysis on the customer attitude towards the deposits and mobilize the same for increasing the customer base of the bank. Bank can focus on introducing new deposit accounts and banking services. So more awareness towards the public about the bank and its products should be created.3. . it can be concluded that the performance of the bank is found satisfactory in terms of deposits. achieved tremendous growth in their business over the past 5 years particularly the deposits are on par with the advances indicating a positive note on its total business performance.3 CONCLUSION Based on the analysis. Thus the bank should take pride in educating the customer about the saving and investments and helps the society to progress further. .3. Indian oversea bank. com/company/Indian_Overseas_Bank/rckscri-1.R. New Age International Limited.indiainfoline.html http://economictimes.N.BO http://www.html http://www.com/Public/companyprofile/IN/Indian_Overseas_Bank_en_1624469.2006 Kothari.securities..com/finance/stocks/analyst?symbol=IOBK.indiatimes.hoovers. Research Methodology.com/Markets/Company/Background/CompanyProfile/Indian-Overseas-Bank/532388 Books referred Maheshwari. C.BIBLIOGRAPHY Web sites http://www.reuters.S.Eleventh Revised and Enlarged Edition.Financial Manangement.cms http://in. 2004 Annual reports Annual report 2008 – 2009 Annual report 2009 – 2010 Annual report 2010 – 2011 Annual report 2011 – 2012 Annual report 2012 – 2013 .com/indian-overseas-bank/stocks/companyid11713. 2nd Revised Edition.